How much would one have to invest in order to generate $4,000 dollars a month in interest income?
Let's look at the possibilities.First, let's look at interest paid by banks on savings accounts. Currently the interest rate on a savings account is less than 1%, but it is possible to find so called 'high yield' savings accounts that pay 1%, so let's assume you put your money into one of those.$4,000 a month is $48,000 a year, and you'd need $4.8 million in the bank at 1% interest to generate $4,000 a month.The current average dividend rate for the S&P 500 is a little over 2%, although it is possible to find stocks with higher dividends. For example, the Vanguard high yield ETF is currently averaging about a 3.4% dividend yield. At that rate you'd only need $1.4 million invested to generate $4,000 a month.Bonds and mortgages aren't much better. Currently, long term interest rates for 30 year fixed mortgages are around 3.6%, about the same as higher dividend yields, so you'd still need to invest $1.4 million to achieve your goal.We're still suffering from hangover effects of the great recession however. Historically, dividend rates and long term interest rates haven't been this low. In more normal times it's been a rule of thumb that you can count on generating 5% in income from your investments. If that were true today, then you'd only need to invest $960,000 to get your $4,000 a month.Note that in each of these cases, you're preserving your principal. If you have a time horizon, of let's say the next 30 years, and you're willing to draw down your funds to zero, then you can generate the money you need by starting out with with less.For example, if you held a 30 year mortgage at 3.5%, you'd need to have invested $890,000 to generate monthly payments of $4,000. At a more traditional 5%, you'd only need to invest $750,000.However, if you're bold and adventurous and willing to take a risk, long term returns in the stock market have averaged 9% or more. The problem is that this is an average, and returns in any given year can fluctuate between minus 30% and plus 20%. Still, if you're willing to ride it out, you could probably generate $48,000 a year for 30 years with something in the neighborhood of $650,000 before you run out of money.
At the top of USA dollar it says"Federal Reserve Note"did you know this is privately owned.?
No, I was not aware of that.
Is 3000$ a month in the philippines is enough to live there with 2 small kids, i already own a house there?
$3000 is like P138,000. That amount is already over and above what an ordinary Filipino can afford. If you spend that in Bulacan, right? Expect to experience luxury as you never had before. It is more than enough for a private school education of your children which can go around a maximum of P40,000 in Bulacan annually. Clothes are also cheap. You can get a good buy for P500 a piece. Water is cheap. Can go around a maximum of P700, that is, if you don't use a bathtub. Electricity may be high because of airconditioning becasue it's hot here. P5,000 may be set as the maximum of you have 2 airconditioning units that are on 15 hours a day. Fuel maybe high but cheaper compared to the west. You can also get a stay-inmaid, uhmmm, plenty of stay-in maids. They cost about P3,000-P4,000 a month. You can get one to just do the laundry, one to do the house cleaning, one to cook and one to watch your kids in school. You can also get a driver if you like and with all 5 of household helps, you won't have to do anything. Even average household have house helps here. If you are into pampering, P1,000 in a salon is good. You can get a good massage for only P300. You can do that everyday if you want to and you will not run out of cash. The money you have is a little more than what an ordinary person in Bulacan has. So, if you stay in Bulacan, I predict that you will save money. Why not invest in business then if you have a considerable amount saved in let's say, 2-3 years time? Bulacan is better than ever and can be a good place to start a business. A resort perhaps? Or a cafe? Or a salon? Or a spa? I suggest you put up one someday for your kids. Good luck! Spend well. (",)